The PNC Financial Services Group (NYSE:PNC) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Valuation and Earnings
This table compares The PNC Financial Services Group and Texas Capital Bancshares' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The PNC Financial Services Group | $21.62 billion | 3.55 | $5.37 billion | $11.39 | 15.87 |
Texas Capital Bancshares | $1.46 billion | 2.30 | $322.87 million | $6.23 | 10.64 |
The PNC Financial Services Group has higher revenue and earnings than Texas Capital Bancshares. Texas Capital Bancshares is trading at a lower price-to-earnings ratio than The PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for The PNC Financial Services Group and Texas Capital Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The PNC Financial Services Group | 1 | 12 | 7 | 0 | 2.30 |
Texas Capital Bancshares | 1 | 9 | 3 | 0 | 2.15 |
The PNC Financial Services Group currently has a consensus price target of $160.1176, indicating a potential downside of 11.44%. Texas Capital Bancshares has a consensus price target of $57.6250, indicating a potential downside of 13.08%. Given The PNC Financial Services Group's stronger consensus rating and higher possible upside, research analysts plainly believe The PNC Financial Services Group is more favorable than Texas Capital Bancshares.
Risk & Volatility
The PNC Financial Services Group has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.
Profitability
This table compares The PNC Financial Services Group and Texas Capital Bancshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Texas Capital Bancshares | 6.16% | 5.48% | 0.40% |
Institutional and Insider Ownership
80.6% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 92.0% of Texas Capital Bancshares shares are owned by institutional investors. 0.3% of The PNC Financial Services Group shares are owned by company insiders. Comparatively, 0.7% of Texas Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
The PNC Financial Services Group beats Texas Capital Bancshares on 10 of the 14 factors compared between the two stocks.